Lawrence Yun is an idiot.
Now he wants to get housing demand flowing again (while stimulating realtor commissions of course) not by the traditional means of lowering prices, but by bribing buyers with a tax credit.
Here's a suggestion Lawrence - IT'S CALLED LOWER THE DAMN PRICES.
You want demand (and realtor commissions) to return? You might want to check out the relationship between demand and price. They taught you that in your Econ 101 class at Purdue, right? We know you read HP, so please brush up on your econ 101 here that Purdue must have failed to teach you. Glad we could help.
Folks, any sucker dumb enough to take a $5,000 government bribe to buy a depreciating debt-trap would be an even bigger idiot than Lawrence Yun. And that's saying something.
Oh, Yun says this would ONLY cost the US taxpayer $40 billion. What a deal!
Go ahead HP'ers - you take it from here.
What is most needed in the current point in the housing cycle is to get the home sales rolling.
There is plentiful pent-up demand. The difficult part is getting this demand unleashed into the marketplace, due the pervasive consumer pessimism related the housing market.
What is critically needed at this important point in the housing cycle is a measure to assuredly and quickly raise home buying activity. This can be accomplished by providing a homebuyer tax-credit. A nationwide $5,000 tax credit (the same amount currently in existence for homebuyers in Washington, D.C.) will cost the federal government $40 billion.
March 12, 2008
Lawrence Yun and the NAR call on their paid poodles in Congress to give a $5,000 tax credit to any fool stupid enough to buy a house
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Dear Mr. Government.
If you match my down payment I'll buy a house.
I'll be putting 50% down.
Sincerely,
A Renter
Totally understandable request. If everyone else is getting a government bailout, why should the realtwhores be any different.
Coke Out!
Instead of $5000 tax credit how about the government offers a appreciation guarantee?
Lets see. That's less than 1% off the price of the condo I'm renting.
Redfin does better than that!
You want people to buy homes?
Send some serious money to the renters. Not the liars camped out in their McMansions figuring out how they can scam a principal reduction on their loan.
Old news dude. I posted about this about 3-4 weeks ago. It is a bill introduced, unfortunately, by my estemmed senator from Georgia.
How about stimulating casino's and tourism they are down also. Too bad we don't have money for education though, then we might be able to work other jobs that require skills.
Now is a great time to buy!
It's suggestions like these from Yun that make me start to doubt my belief in the first amendment. Maybe he should be shot for suggesting such a waste of my tax payments.
He went to Purdue?
Crap school
Yun's plan is stupid. Next topic:
If we really want to encourage homedebtorship, shouldn't the Fed be raising rates now to fight inflation? I mean, it is rumored that banks are going to start requiring downpayments for mortgages again, but it will be difficult for J6P to come up with the cash due to the difficulty of saving in a highly inflationary environment.
In other words, the loose money days are behind us, and the sooner the Fed gets the message, the better.
Hmmm. I thought Yun said the real estate market had 'bottomed'. If it's bottomed, who needs a tax credit? But then again, hasn't the NAR said that over and over again over the last number of months?
Actions speak louder than words and it's sad when even the shills don't believe their own verbal diarrhea.
The whole tax deduction on home mortgage payment is a big handoff to the finance/mortgage/construction/real estate industry anyway.
This is just going one small step further.
Too bad we don't have money for education though, then we might be able to work other jobs that require skills.
The US spends the second most money per student in the world, behind only the UK. Countries like Sweden and Japan spend just over half as much, getting much better results.
As for college, federal and state pell grants are available, as are thousands of scholarships and subsidized student loans.
I worked my way through college and paid for tuition out of my own pockets. Today's spoiled kids want to live like kings and queens while in college. They want news cars, iPhones, XBox, nice condos, eat at nice restuarants. Those spoiled kids became spoiled adults who are now in deep debt since mommy and daddy aren't around to bail them out anymore.
I wouldn't view this as them "giving" me anything - it's my money to begin with.
Is Yun is so sure that it will work to stimulate demand, why not just have realtors(TM) donate $5,000 to each sale?
I am a freakin genuis!!!!
We were looking at MLS listings yesterday and people are still asking over $1.5M for the house we rent for $3,600.
Dopes.
Oh yeah many have been listed for a year or longer.
in honor of the ex governor of NY i propose a 5k 'whore tax credit' to be claimed when you submit receipts for prostitution with next years tax returns.
Yun is only being rational - they have paid the members of congress (NAR was among the biggest donors), now they want a payback.
I like the idea with the realtor sacrifice though: only for this year, realtors reduce commisions to 1% total. If that doesn;t bring back buyers, a tax credit will neither
Its sad that anyone still quotes this guy at all. Discredited is too nice a term to discribe this moron.
By the way, when will Centry21 Remax Weichert and the other big realestate firms go under? They have to be bleeding cash by now.
Actually, it's not just:
"Lower your damn prices!"
It's also:
"Lower your damn commissions!"
how about cash back like the car dealers offer?
oh, wait a sec, they have already been doing that....
Make that a $50K tax credit AND lower the price 20%, and you have got yourself a DEAL Howie!!
What a dumbass!
LET US HELP YOU OUT OF THE BIGGEST, STUPIDEST INVESTMENT YOU'VE EVER MADE!!!
NO COMMISSION. NO FEES!!!
JUST A BIG ORANGE ENVELOPE AND A STAMP!!!
JINGLE MAIL, JINGLE MAIL!!!
SEND THOSE KEYS TODAY!!!
DOPES!!!
The climate the Fed has created with their desperation and intensely stupid policies invites intensely stupid suggestions such as this one by Yun. I am unsurprised, and would be unsurprised if the @sshole dip$hits in charge of this country's finances went for this approach - they are stupid enough and myopic enough. Bernanke and the politicians, including Obama, Billary, and McCain, all have their heads firmly up their a$$es, and they'll listen to f#ckwads like Yun. They will not however listen to those that do not have their heads up their asses and can therefore see clearly the data and the true problem at hand. It is truly not a complicated problem, and its solution is equally uncomplicated. It has become certain that the government will confuse, muddle, and exacerbate the issue, and greatly lengthen its resolution. Our country sucks such an enormous dick, it is unbelievable.
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